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SAS based Business Model

SAS based Business Model for movement and sale of DVDs

The client is one of the world’s leading providers of in-home movie and game entertainment with more than $5 billion in annual worldwide revenues and more than 8,500 stores throughout the Americas, Europe, Asia and Australia. The company rents more than 1 billion videos, DVDs, and video games at its Video outlets each year. It also operates an online business and has marketing partnerships with companies such as Time Warner and DIRECTV.

CLIENT’S NEED

The SAS solution used by the client supported its legacy business model wherein pre-planned allocations drove the distribution of material to various points-of-sale. The new business model required an ‘on-demand’ emphasis, one that rapidly matched anticipated demand with available inventory, often situated in up to 5000 locations. Once located, the inventory needed to be routed to its new destination, using available warehousing and distribution infrastructure. A new Business Operations Model was required.

Additionally, the SAS solution implementation supported real-time processing of a limited number of SKU’s overnight. With the change to the business model, the computational model needed to be able to support several housand SKU’s in a few hours. This required a new SAS Operations Research Solution.

HOW INFOVISION HELPED

Working closely with our client’s team, InfoVision developed a Business Operations Research (BOR) model to support the new business model. Our BOR model accommodated the client’s new and emerging requirements related to inventory pull/push, warehousing and distribution in support of its new business model.

Additionally, we developed a new SAS Operations Research (SOR) model. The new SOR model would leverage the existing SAS deployment and extend it by integrating additional computational elements and steps process. This would result in an increase in (a) the number of SKU’s supported and (b) the number of points-of-sale supported while reducing the overall processing time by about 2000%.

Finally, InfoVision developed a proof-of-concept to support our recommended solution.

IMPACT

InfoVision’s work has helped our client develop an innovative solution to (a) Rapidly respond to product demand (b) Leverage current technology and logistics investments and (c) Maximize its competitiveness and stay at leading edge of the market.